Deadline for free foreclosure review program could affect thousands in Milwaukee

A December 31, 2012 deadline for the Independent ForeclosureReview Program (IFRP) could affect thousands of eligible Milwaukeemortgage holders who may have been victimized by improper lendingpractices and/or services, according to Alderman Joe Davis, Sr.Alderman Davis said anyone whose mortgage was in theforeclosure process during 2009-2010 and believes they may have lostmoney because of mortgage service provider errors should considerlooking into whether they are eligible for the IFRP. “Independentparties will review each case, and I believe it just makes sense to seeif you qualify, especially if you believe your mortgage was not properlyserviced,” Alderman Davis said.Alderman Davis, chair of the Common Council’s Community andEconomic Development Committee, will hold a joint news conference on thematter with officials from Housing Resources, Inc. at 10 a.m. onWednesday, December 5, 2012 in the first floor rotunda at City Hall, 200E. Wells St.According to information provided by Housing Resources, Inc.(HRI), it has been working diligently during the past several years toassist homeowners with mortgage delinquency issues or those who arefacing foreclosure. Recently, HRI received notice that the IndependentForeclosure Review will be ending at the end of 2012.The Independent Foreclosure Review, according to HRI, isbeing required as part of the consent order with federal bankregulators. The Office of the Comptroller of the Currency (OCC), theOffice of Thrift Supervision (OTS) (independent bureaus of the U.S.Department of the Treasury), and the Board of Governors of the FederalReserve System (FRB) issued the consent order against 14 mortgageservicers and their affiliates. The Independent Foreclosure Reviewapplies to those servicers’ customers who were part of a foreclosureaction on their primary residence during the period of January 1, 2009to December 31, 2010.Alderman Davis said HRI has indicated that the purpose ofthe review is to provide eligible borrowers with the opportunity torequest an independent review of their foreclosure process. If thereview finds that financial injury occurred as a result of errors,misrepresentations or other deficiencies in the servicer’s foreclosureprocess, the borrower may receive compensation or other remedy.The participating mortgage servicers have been working withfederal banking regulators and independent third party consultants tocreate a process that ensures all eligible borrowers are treatedconsistently, and receive a fair and impartial review of theirforeclosure. The foreclosure process does not necessarily include thefinal sale of the home. The homeowner can still be in their home and beeligible. The mortgage loan may be eligible if the home was the owner’sprimary residence and was in the foreclosure process in 2009 or 2010with one of the participating mortgage servicers.